The global snack bar market is expected to be worth nearly $32 billion in 2025 - up from just $20 billion in 2018 - according to industry research group Grand View Research. And in the US, the protein bar market is on track to grow an additional $806.08 million by 2024. This industry growth aligns with an increasing number of health-conscious consumers, accelerated by the onset of the COVID-19 pandemic. With the relationship between nutrition and health strengthened in recent months, many have been turning to better-for-you and shelf-stable snacks, like protein bars, bites, shakes, and nut butter filled bars, to reach their nutrition goals and reap numerous health benefits.
In light of COVID-19, protein bar companies will continue to stay among the hottest places for cash-heavy venture capitalists to put their money. Indeed, there were little to no new investments in the nutrition bar industry during the pandemic, but notable investments in the second half of 2019 are only the “tip of the iceberg” of what’s to come, say industry analysts. For proof, they point to three key deals that all happened within 6 months of the start of 2020:
- The Simply Good Foods Company acquired Quest Nutrition for $1 billion.
- Hershey’s bought ONE Brands for $397 million.
- Mondelēz International purchased Perfect Snacks for an undisclosed amount thought to be in the hundreds of millions.
Financial analysts say this is only the start. To scale the $30 billion mark within the next five years, they expect the protein bar industry to continue to grow at an unprecedented rate by capitalizing on their ability to be first-to-market with many of the hottest dietary and wellness trends and on-the-go eating norms.
Want to capitalize on the growing popularity of protein bars and other protein products? Download the 2021 Guide to Protein Bar Manufacturing to learn more about:
- Key steps in the manufacturing process, from market research to continued innovation;
- What questions to ask potential co-packers;
- How to select the protein bar co-packer that's right for you;
- Key roles you need on your team, in order to start selling.